Calculating Depreciation Expense:

For each plant asset,

1. Calculate the amount to be depreciated.

2. Calculate the annual depreciation expense using the straight-line method.
3. Calculate the depreciation expense for the first year.

Plant assets Months Original Estimated Estimated owned first cost disposal value useful life year Cash 8 $450 $30 7 years register Computer 2 $6,500 $1,500 5 years Conference 6 $1,900 $100 25 years table Delivery 3 $36,400 $6,400 5 years truck Desk 11 $3,180 $300 20 years